HDFC Asset Management Company Limited Q2 FY19-20 1 Industry - AUM - PowerPoint PPT Presentation

HDFC Asset Management Company Limited Q2 FY19-20 1

Industry - AUM and Net Sales 25% 34% 35% 36% 43% 42% 43% 43% 43% 23.8 24.3 24.5 2.3 1.9 2.1 22.0 21.4 Mar-14 to Sep-19 CAGR: 0.8 1.5 Overall: 22%; Equity: 36%; Debt:8%; Liquid: 26% 4.7 4.7 4.4 17.5 3.4 3.9 0.5 3.1 7.0 7.1 12.3 7.3 8.0 7.3 10.8 0.2 AUM ( ₹ trn) 0.2 2.0 7.6 8.3 1.6 0.2 1.3 5.8 5.3 10.5 10.4 10.2 4.7 9.2 9.2 6.3 4.3 3.7 2.1 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Sep-19 Arbitrage AUM: ₹ 0.75 trn Equity Debt Liquid Others Equity as a % of Total Q2FY20 Arbitrage net flows: ₹ 163 bn Yearly net sales Quarterly net sales 2,608 Net Sales ( ₹ bn) 1,173 958 1,187 1,070 938 809 159 761 326 283 238 395 393 241 128 128 229 227 96 108 171 98 74 17 (1) (11) (29) (113) (49) (94) (156) (88) (486) (1,244) (711) FY14 FY15 FY16 FY17 FY18 FY19 Q2FY19 Q1FY20 Q2FY20 ____________________ 2 Source: AMFI AUM excluding FOF – domestic; equity includes equity- oriented hybrid funds; ‘Other’ includes Gold ETFs, other ETFs and FOF – investing overseas. From April 2018, Arbitrage is included in 'Other' category, except for computation of CAGR of equity-oriented AUM.

Individual / Institutional MAAUM, SIP Flows, B-15/B30 MAAUM of Individual Investors (1)(2)(3) SIP Flows (1) MAAUM of B-15/B-30 (1)(2) 13.5 21.1 24.4 26.2 27.4 28.4 10.1 16% 16% 16% 17% 19% 15% 15% 15% 16% 39.2 41.4 47.2 54.8 70.9 77.5 82.1 83.4 85.2 (MAAUM in ₹ tn) B15 B30 (SIP contribution in ₹ bn) 83 81 81 (MAAUM ₹ trn) 77 21.8 20.8 21.6 20.7 71 18.4 11.8 11.8 11.0 15.5 11.3 (46%) (46%) (45%) (47%) 11.0 (49%) 43 11.4 10.1 10.2 (54%) 31 7.6 7.4 6.5 (55%) (54%) 13.5 14.0 5.0 13.8 13.0 4.3 4.0 4.0 (56%) 11.7 (55%) (54%) 3.8 (54%) 3.1 (53%) 3.6 (51%) 8.5 2.2 1.9 (46%) 6.2 5.6 1.4 3.9 (45%) (46%) (44%) Mar-14Mar-15Mar-16Mar-17Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Mar-14Mar-15Mar-16Mar-17Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Apr-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 T-30 B-30 Individual Investors Institutional Investors No. of SIP Accounts (mm) T-15 B-15 Share of B-15 MAAUM Individual Folios (mm) Share of B-30MAAUM ____________________ (1) Source: AMFI, (2) Based on monthly average AUM (3) Percentages in brackets denote % share of total 3

HDFC AMC at a glance 55% Assets Under Non-Equity Oriented 45% Equity-Oriented Assets Assets Management (1) ₹ 2011 bn ₹ 1,651 bn ₹ 3,662 bn US$ 28.4 bn US$ 23.3 bn US$ 51.7 bn 9.4 mm ₹ 110 bn Live Accounts (1) PMS & SMA AUM (1) (3) 213 Branches (1)(2) ; 1,217 E mployees (1) 80k+ Empaneled ₹ 2,180 bn Distribution Partners Individual MAAUM (1) ____________________ (1) As of Sep 30, 2019 / for Sep 2019 ; (2) Includes one representative office in Dubai; (3) Includes advisory mandates 4 (2) Source: Internal. USD/INR conversion rate: ₹ 70.8688

Total AUM and Market Share Total AUM (1) Market Share in Total AUM (2) ₹ billion YoY 25% HDFC MF, Sep-2019 14.9% 3,662 3,567 3,439 2,920 2,926 June-2019 Sep-2018 HDFC MF, 2,306 HDFC MF, 14.7% 13.3% 1,656 1,506 1,089 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 ____________________ (1) Source: Internal (2) Source: Internal, AMFI 5

Actively Managed Equity-oriented AUM and Market Share #1 Market Share in Actively Managed Equity-oriented Actively Managed Equity-oriented AUM (1) AUM (2) ₹ billion HDFC MF YoY 11 % Sep-2019 15.8% 1,689 1,643 1,637 1,476 1,449 Sep-2018 June-2019 957 HDFC MF HDFC MF 16.0% 675 16.2% 629 406 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 ____________________ (1) Source: Internal (2) Source: AMFI, Internal 6 Actively managed equity-oriented AUM excludes index and arbitrage funds from equity-oriented funds

AUM by Segment – HDFC AMC and Industry HDFC AMC MF AUM by Segment (1)(3) Industry AUM by Segment (2)(3) Sep-2019 Sep-2019 Others Others 1.8% 9.4% Liquid 26.6% Liquid 19.0% Equity Equity 42.5% 45.1% Debt Debt 26.6% 29.1% Sep-2018 June-2019 Sep-2018 June-2019 Others Others Others Others 1.4% 8.5% 6.9% 1.5% Liquid Liquid 15.6% 23.8% Liquid Equity Equity Liquid 17.9% Equity 41.9% 43.3% 19.3% Equity 47.7% 50.7% Debt 32.3% Debt Debt Debt 27.1% 33.3% ____________________ 29.0% (1) Source: Internal (2) Source: AMFI (3) From April 2018, Arbitrage is included in other category 7

Individual Investors – no of Accounts & MAAUM Number of Live Individual Accounts (in millions) (1) Individual MAAUM % of Total (1) YoY 10% YoY 9% 624 931 945 1,350 1,863 1,985 2,167 2,214 2,180 9.39 64.5% 9.20 9.03 63.0% 62.2% 8.62 59.2% 8.05 57.4% 56.3% 56.0% 54.6% 54.1% 52.8% 6.15 5.55 5.14 4.44 (2) Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 Industry Sep-19 Individual MAAUM (Rs bn) (1) Individual customer prefer equity-oriented schemes and stay invested for longer periods ____________________ (1) Source: Internal (2) Source: AMFI 8

Most Preferred Choice of Individual Investors Individual Assets Market Share (Sep-19) Individual Assets Market Share (June-19) Individual Assets Market Share (Sep-18) 15.1% 14.0% 15.7% 15.6% 13.6% 13.6% 9.8% 9.4% 9.1% 10.4% 9.9% 8.9% 8.6% 8.7% 7.8% HDFC ICICI Pru ABSL Nippon SBI HDFC ICICI Pru SBI ABSL Nippon HDFC ICICI Pru SBI ABSL MF Nippon MF MF MF MF MF MF MF MF MF MF MF MF MF MF Source: AMFI , based on monthly average AUM 9

Unique Investors Unique Investors- HDFC AMC vs MF Industry 28% 28% 28% 25.0 (Unique Investors in million) 20.0 19.6 20.0 18.4 15.0 10.0 5.5 5.4 5.1 5.0 0.0 Sep’18 June'19 Sep'19 HDFC Mutual Fund Mutual Fund Industry HDFC MF share in Mutual Fund Industry Source: CAMS. Note: Unique Investors as identified by PANs/PEKRNs of all unit holders & Guardians 10

Systematic Transactions Quality Long-term Inflows Through Systematic Transactions Long Tenure SIP Book (1) Strong Growth in Systematic Transactions ( ₹ bn) 3.47 12.8 12.7 79.5% 11.8 67.2% 11.5 11.5 6.8 Over 5 Years Over 10 Years 4.9 4.7 1.23 3.1 Strong and growing “Order Book” to provide predictable flows Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Sep-18 Mar-19 Jun-19 Sep-19 #mm systematic transactions ____________________ Source: Internal (1) Based on tenure at the time of registration of all live SIPs during Sep-19 11

Multi-channel Distribution Network Well Diversified Distribution Channel Equity-oriented AUM (Sep-19) Total AUM (Sep-19) HDFC Bank 7.2% HDFC Bank 10.0% Banks, 13.0% Direct Banks, 16.1% 20.0% Direct 42.5% IFAs 27.3% National Distributors IFAs 22.8% 41.1% National Distributors 17.3% HDFC Bank 11.3% Sep-2018 June-2019 HDFC Bank 10.3% Sep-2018 HDFC Bank 9.1% June-2019 HDFC Bank 7.7% Direct, Direct, 18.8% 17.4% Banks, 16.4% Banks, 15.8% Banks, 17.8% Banks, 13.3% Direct Direct, 39.2% 34.5% IFAs, 29.0% IFAs 27.5% National National Distributors, Distributors, 24.1% 24.6% IFAs, 40.7% IFAs, 40.3% National Distributors National Distributors, 20.0% 20.8% Source: Internal 12

Geographic Spread Total MAAUM by T30 and B30 cities (1) #2 Player in B-30 Markets (1) B 30, SBI MF, 12.7% 19.1% Others, 37.3% HDFC MF, 12.5% ICICI Pru MF , 11.2% Nippon UTI MF, T 30, MF, 9.8% 10.1% 87.3% Network of 213 branches with 137 in B-30 cities (2) c. 80k+ empaneled distribution partners ____________________ (1) Source: Internal (2) As of Sep 30, 2019. Includes one representative office in Dubai; 13

Strong Digital Presence Supported by Integrated Online Platform Electronic and Physical Transaction as % of Total Transactions 30.7% 32.8% 35.8% { • } 69.9% Digitization Across Functions 69.3% 67.2% 64.2% 30.1% FY15 FY19 H1FY19 H1FY20 Electronic Physical Strong online presence - dedicated separate digital platforms distribution partners and customers FY15-19 CAGR of 42% for electronic transactions 17.2% transaction during FY19 were through HDFC MF Online and mobile application Source: Internal 14

Financials

Financials Summary – Half Yearly Earnings ( ₹ mm) Particulars HYE FY20 HYE FY19 Change Income Revenue from Operations 10,024 9,516 5% Other Income 994 648 53% Total Income 11,018 10,164 8% Expenses Finance Costs 46 - - Fees and Commission Expenses 122 1,574 -92% Impairment on Financial Instruments - 212 - Employee Benefit Expenses 1,145 1,081 6% Depreciation and Amortization Expenses 243 57 326% Other Expenses 888 1,321 -33% Total Expenses 2,444 4,245 -42% Profit before tax 8,574 5,919 45% Tax Expenses 1,974 1,807 9% Profit after tax 6,600 4,112 61% Other Comprehensive Income (net of tax) (40) 2 Total Comprehensive Income 6,560 4,114 59% Particulars HYE FY20 HYE FY19 Change Revenue from Operations 10,024 9,516 5% Total Expenses* 2,444 4,033 -39% Operating Profit from core AM business 7,580 5,483 38% *Adjusted for non recurring expenses 16